Banks make big cuts to fixed rate mortgages

Commonwealth Bank has followed the other major banks by announcing big cuts in interest rates on fixed rate mortgages. The Commonwealth will cut rates by between 0.7 per cent and 1.55 per cent on their range of fixed rate home loans. NAB announced last Thursday cuts of up to 1.6 per cent to fixed rates which came into effect yesterday. The NAB announcement was quickly matched by ANZ and Westpac. ANZ offers rates of 7.69 per cent for its two, three and four year fixed rate mortgages. Westpac currently has the best rates on offer for fixed rate home loans, offering 6.99 per cent for a three year loan. On a one year fixed rate mortgage, Westpac is offering 7.19 per cent, NAB is offering 7.29 per cent and Commonwealth is at 7.14. Commonwealth also offer a one year guaranteed interest rate loan of 7.09 per cent.

Source: The Australian